Increased need, decreased donations

Abby McGuirefor the Daily News

Published 8:00 pm, Thursday, March 26, 2009

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When Doug and Carrie Wilcox and their three children lost their Porter Township home to a fire last December, they turned to friends, neighbors and the American Red Cross of Midland and Gladwin counties for support and necessities.

"We're definitely grateful to them and to all the good people who donated money, clothing and food," Doug said.

Community members donated to help the Wilcox family, who didn't have insurance on their home. A neighboring family opened their home and provided them a place to stay, and the American Red Cross provided them with blankets, clothing and necessities, along with a pre-loaded debit card to buy other essentials they'd lost.

"It's pretty devastating," Doug said of the family's losses to the fire, which left them with only the clothes on their bodies and a few pictures and pieces of damaged jewelry. "I don't know what we'd have done without the Red Cross."

The Wilcoxes still are staying with their neighbors, but are in the process of finalizing a loan on a modular home to put where their old home once stood.

Like the Wilcoxes, more people are sharing housing with friends or extended family due to disasters or economic hardships, so when a fire or disaster strikes, more people are being affected and need assistance, say staff at two Red Cross chapters.

The American Red Cross of Midland and Gladwin counties and the American Red Cross East Shoreline Chapter are wondering about uncertain funding and uncertain futures, due to increases in the number of people needing help and declining donations they attribute to the depressed economy.

Gena Gates, executive director of the East Shoreline Chapter, which serves, Bay, Arenac, Huron and Tuscola counties, said the chapter hasn't seen in increase in the number of single family fires, but that the number of fire victims they provide relief to has increased because more families are sharing households with relatives or friends.

"It seems families are going together to reduce expenses and help each other," Gates said.

Similarly, Joy Buchanan, interim executive director of the American Red Cross of Midland and Gladwin counties, says the chapter hasn't seen an increase in the number of fires since last year, but they are seeing increased need. They've more commonly seen seven to eight people who need aid in single-family fires, compared with three to four in the past.

The Midland and Gladwin chapter also has seen more demand for the emergency dental program. The chapter is helping 100 percent more people compared to last year, Buchanan said.

Despite the increase need, Buchanan said the agency has seen a 25 percent decrease in private donations this fiscal year. She attributes the decline to the economy.

"Either people are not giving because they have other choices to make, or they're reducing their donations," she said.

At the East Shoreline Chapter, donations are down, as is money they raise from hosting events. Their Wild Game Dinner in 2007 brought in $16,750 in sponsorships. This year's dinner earned less than half at $7,750.

The East Shoreline Chapter also is concerned about revenue it earns from an endowment fund, the earnings of which comprise 30 percent of the operating budget.

The chapter is only allowed to spend the earnings from the endowment, not the original gift. But with the shrinking financial market, Gates said the earnings from the last five years could've been wiped out.

The chapter has had to dip into its reserve fund to bridge budget gaps.

"A lot of chapters don't have reserve funds," Gates said. "A lot of chapters are selling their offices. We're very fortunate to have reserves we can tap into and not have to sell our building, merge with another chapter or go out of business."

The Midland and Gladwin chapter also has a reserve fund, but has not had to use any of it, yet, Buchanan said.

The Midland and Gladwin chapter receives a portion of funding from the United Way of Midland County, rather than an endowment fund. It receives 50 percent of its funding for its $667,000 budget from private donations and 50 percent from United Way.

Both chapters plan continue to meet people's needs in the community.

"Our status is good right now," Buchanan said. "But every organization needs to plan for a worst-case scenario. We're always planning. It's at the top of our mind that we keep trying very hard to maintain our programs."

Gates said the struggle to keep afloat in tough times is worthwhile.

"We're the only place people have to turn to," Gates said. "A lot of families have no insurance and nowhere else to turn when something happens and they find themselves on the street with no possessions."

Both have hope for their chapter's future.

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"Hope? We have to have that," Gates said. "If there's nothing else, we've got to have hope."